Car insurance: how does the pricing work: part 2

[Tigerman]

So, I get my updated car insurance contract, showing a 15% pa increase, same as last year. They say the increase is due to "increase cost of imported spare parts". Broker fees doubles to R45/month.

I phone the car dealer/agent - price increase on spare parts is 8% this year and the insurance company's explanation is "not right". The car's market value is half that when I bought it 5 years ago but i'm about to pay 36%, in real terms, more on premiums. I never claimed and my risk profile is the same, only i'm an older and wiser road user. The car is in excellent nick as i use public transport to work with low km's for its age.

I call the insurance company. they can't say why the broker fee doubled. after a 2 call backs, a "consultant" calls me. i ask if she thinks i should be paying the new (2012) premium for a 5 year old car with a current value of Rx , assuming I was a new client? She answers "no". I say i'll move to another company. She'll speak to her manager.

She calls back and result: the broker fee will be slashed and my new total premium has been reduced to 64% of the original 2012 estimation or R100/month LESS than 2011's. I say its a realistic premium and the consultant says "maybe". I proved they've been screwing me (and you and you) by annually increasing premiums based on rubbish "spare parts cost increases". people, check your insurance contracts and questions everything.

 

[Meteor]

Insurance on vehicles should always go down every year not up, excluding claims.

 

[Tim182]

So, I get my updated car insurance contract, showing a 15% pa increase, same as last year. They say the increase is due to "increase cost of imported spare parts". Broker fees doubles to R45/month.

I phone the car dealer/agent - price increase on spare parts is 8% this year and the insurance company's explanation is "not right". The car's market value is half that when I bought it 5 years ago but i'm about to pay 36%, in real terms, more on premiums. I never claimed and my risk profile is the same, only i'm an older and wiser road user. The car is in excellent nick as i use public transport to work with low km's for its age.

I call the insurance company. they can't say why the broker fee doubled. after a 2 call backs, a "consultant" calls me. i ask if she thinks i should be paying the new (2012) premium for a 5 year old car with a current value of Rx , assuming I was a new client? She answers "no". I say i'll move to another company. She'll speak to her manager.

She calls back and result: the broker fee will be slashed and my new total premium has been reduced to 64% of the original 2012 estimation or R100/month LESS than 2011's. I say its a realistic premium and the consultant says "maybe". I proved they've been screwing me (and you and you) by annually increasing premiums based on rubbish "spare parts cost increases". people, check your insurance contracts and questions everything.

Sounds like you're with one of the budget insurers. Normally, premiums go down as the value of the car decreases

 

[Other Pineapple Smurf]

Get a new broker! My broker does not charge commission and reduced our premiums but increased our cover. Also consider a bundled package as the entire deal is often better (we did that, I pay more on one item but less on another but it all evens out to a rather good amount).

 

[Tigerman]

Sounds like you're with one of the budget insurers. Normally, premiums go down as the value of the car decreases

Actually, the insurer is a one of the four big banking groups and the brokers a major underwriting crowd. i've saved myself over R1900 a year, as a result, but am fuming about overpayments for prior years. every year i ask the same question, what is the market value and therefore the premium i must pay? But its these past 2 years that the premium has gone up more than twice inflation. and i bank with the same company!

Last year i did looked for other quotes. Auto&General asked R100 more than what i paid then and outsurance asked a lot of irrelevant questions so i put the phone down. i better see if i can get a better deal this year

 

[_kabal_]

yup, I call my broker yearly, and every year my insurance goes down, as it should

 

[Freakboy]

Can you guys please post or pm me your broker's contact details. Both our car’s yearly premium increases are happening next month, so want to phone around and see if we can't get anything better.
We are at A&G for the cars.